Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Advance payment

• 122.72 (1) Subject to subsection (5), an individual in relation to a month specified for a taxation year who is an eligible individual for the preceding taxation year who files a return of income for the preceding taxation year on or before the first day of November of the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/6 of the total of the amounts, if any, determined for the individual for the preceding taxation year under subsections 122.7(2) and (3).

• Marginal note:Conditions of application of subsection (3)

  (2) Subsection (3) applies in respect of an individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxation year, if absent subsection (3)

  • (a) the amount deemed by subsection (1) to have been paid by the individual during the particular month specified for the taxation year would be less than $33; and

  • (b) it is reasonable to conclude that the amount deemed by subsection (1) to have been paid by the individual during each subsequent month specified for the taxation year would be less than $33.

• Marginal note:Single advance payment

  (3) If this subsection applies

  • (a) the total of all amounts that would otherwise be deemed by subsection (1) to have been paid on account of the individual’s tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year; and

  • (b) the amount deemed by subsection (1) to have been paid by the eligible individual during those subsequent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection.

• Marginal note:Months specified

  (4) For the purposes of this section, the months specified for a taxation year are July and October of the taxation year and January of the immediately following taxation year.

• Marginal note:No advance payment

  (5) For the purposes of subsection (1), an individual is not an eligible individual for the preceding taxation year in relation to a month specified for a taxation year if the individual

  • (a) dies in the taxation year before the first day of July;

  • (b) is confined to a prison or similar institution for a period in the taxation year of at least 90 days that begins on or before the first day of the specified month; or

  • (c) ceases to be resident in Canada on a day in the taxation year that is on or before the first day of the specified month.

• Marginal note:Notification to Minister

  (6) If, in the absence of subsection (5), an individual or their cohabiting spouse or common-law partner at the end of the preceding taxation year would be deemed in a taxation year to have paid an amount on account of tax payable for the taxation year under this section, the individual (or, in the case of a deceased individual, their legal representative) shall notify the Minister of the occurrence of any of the following events before the end of the month following the month in which the event occurs:

  • (a) the individual dies in the taxation year;

  • (b) the individual ceases to be resident in Canada in the taxation year; or

  • (c) the individual is confined to a prison or similar institution for a period of at least 90 days in the taxation year.

• Marginal note:Advance payment – no eligible spouse

  (7) Subsection (1) is to be applied to a particular individual in relation to a month specified for a taxation year as if section 122.7 applied to the particular individual for the preceding taxation year on the basis that the particular individual had no eligible spouse for the preceding taxation year, if

  • (a) another individual was, for the purposes of section 122.7, the eligible spouse of the particular individual for the preceding taxation year; and

  • (b) the other individual is not, for the purposes of subsection (1), an eligible individual for the preceding taxation year in relation to the month specified for the taxation year because of subsection (5).